It is important to look at the "real" cost of buying a home, paying special attention to current mortgage rates,
current home values, and inflation.
As of 2009, the 30 year fixed mortgage interest rates are at the LOWEST point in the last 40 years!
Now is a GREAT time to lock in a low interest rate on a 30 year fixed mortgage!!!
In the last 2 years, the median sale price has dropped significantly, however the 12 year trend tells us
that this market is due for a correction.
The following graph shows the total interest paid over a 30 year period for the median priced home
using the U.S. average yearly fixed mortgage rate (for each year). This graph does not take inflation into
account. With low interest rates and low home values, you can easily see that the overall affordability of homes
is at the lowest point in 14 years, (especially after taking inflation into consideration).
